The Triple Challenge Dragging

The Triple Challenge Dragging Down Solar In India

On August 21, the Central Electricity Authority (CEA), the premier national body tasked with laying down the roadmap to power for all citizens, and the policy interventions to get there, released a report on India’s solar and wind sector. Titled simply as “ Report of Under Construction Renewable Energy Projects”, the bland title laid bare a shocking truth formally. That India’s renewable sector, especially the solar sector, was in some serious strife. The CEA report has information over 90 projects countrywide, adding up to 39.4GW, which are facing delays due to various reasons. Coupled with data from the MNRE (Ministry of New and Renewable Energy), the picture is stark. Of this 39.4 GW of renewable projects, over 28 GW of solar projects are running behind schedule, of which 20 GW have got a 5 month extension as per the rules for Covid impacted projects. The remaining 8 GW are not even getting of the ground anytime soon, as they are missing a formal Power Purchase Agreement(PPA) or a Power Sales Agreement (PSA).

The PPA is usually what developers sign with a centrally appointed agency like SECI or NTPC, which sign this subject to a back to back arrangement in the form of a PSA with a discom. So no PSA, no PPA . A detailed reading of the report makes it clear that even projects that have taken the benefit of an extension due to the Covid rule, many will still miss the newer deadlines, thanks to the limited progress made on critical parameters including financial closure, land acquisition, or even probability of transmission offtake in time. Now, if this was the only issue facing the solar sector, the MNRE, which has been unusually aggressive in pushing for more tenders and a better policy environment , could have been trusted to seek a way out. After all, there is a target to be met. 100 GW of solar (out of a renewable target of 175 GW by 2022 end). But the sheer scale of challenges facing the sector today mean that come 2022 , the best the MNRE can hope for is a ‘well tried’. So what are the biggest challenges that we see. Lets move to the challenge number 1.

Source: CEA Report On Optimal Generation Capacity Mix 2029-30

Union Power and MNRE Minister R.K. Singh. In The Hot Seat.

India’s Thermal Legacy

At 231.5 GW out of a total capacity of 371 GW, India’s thermal sector (coal+gas+diesel) accounts for just over 62 percent of total capacity. Of this 62 percent, almost 88 percent is coal and lignite (55 percent of all sources total), with the remaining accounted for by gas (6.7 percent) and diesel. That’s a number expected to go down to possibly 50 percent by 2022. But don’t let that confuse you. In terms of actual share of generation, thermal sources are comfortably above 75 percent even today, and by 2022, are expected to be well over 65 percent.

India Power Sources

Thermal ( Coal+ Gas+ Diesel) Nuclear Hydo Renewables ( Solar+ Wind+ Bio Gas+ Mini Hydro)

Capacity (In GW)

231.5

s6.7 45.7 88

India’s Power Capacity as of July, 2020 Source: National Power Portal

The sheer dominance of thermal means that the country’s power infrastructure moves to the beats and vagaries of fossil fuels today. Be it the coal mines that supply the coal, the massive investments locked into thermal plants, or the transmission infrastructure designed for thermal offtake, thermal dominates. That makes it a very powerful incumbent to dislodge, or even cede ground to renewable energy as it must.

So what are the biggest challenges here?

By far, the biggest stumbling block to real change is the nature of the whole ecosystem that has come up around thermal. From long term PPA’s that have locked in discoms to buying fixed, or fixed plus costs for a long time, to the massive investments already made, The discom issue has been well documented, caused as it has been by years of mismanagement, poorly managed subsidies, and worse. Current outstandings to the generation sector have crossed rs 1,50,000 crores, of which over Rs 8,000 cores is owed to the renewable energy sector. Multiple industry bodies have been sending missives to the government to help out, with some claiming that these delays could even push cash stretched developers to bankruptcy. But actual progress has been very slow. A report by Vibhuti garg and Kashish Shah, of the Institute of Energy Economics and Financial Analysis, called “ The Curious Case of India’s Discoms- How Renewable Energy Could Reduce Their Financial Distress” describes the discom issues well. To quote, ”The absence of competition, unsustainable cross-subsidies, economically inefficient tariff setting processes, expensive thermal power purchase agreements (PPAs), and a lack of modern technology and infrastructure development are adding to discoms’ losses.”. The report, among other action points, proposes the shut down of end of life, ageing plants. Or avoiding entering into anymore long term thermal power contracts for high cost power. Both points have merit. If we take 1985 as a cut off year, then the total potential for retirements here will be close to 35 GW ! The Central Electricity Authority, taking a cut off of 25 years, has actually retired, in the March’ 2016 to May’ 2019 period, 30 different units spread across 26 projects using inefficient coal / lignite based thermal power units. These units were rated for a total 8470 MW generation capacity . In addition, 810.94 MW capacity Gas based/ DG Set units have also been retired since Sept.’2015 to May’ 2019. Besides these, it does consider further retirements totalling 25252 MW in the period 2022-2030. Keep in mind that all these are mostly public sector units. There is significant scope to create capacity for new power demand by finding ways to retire inefficient diesel and thermal units in India’s massive captive power sector too, variously estimated at 50 GW capacity. Though, more dependable power supply from the central grid will be the surest way to ‘retire’ this particular capacity. An unexpected challenge to a faster phase out cycle is the fact that among all the fossil fuels, the only one we have in abundance is coal. That is the reason that even on date, almost 60 GW of thermal projects stay on the planning horizon. That is unconscionably high,

considering the cost, impact and sustainability of coal fired power versus renewable energy today. The wide domestic availability of coal decided not only our high focus on thermal power, but today, even plans to phase out thermal energy have to consider its impact on coal mining in India. Barely any effort has been made to explore options beyond mining, including letting the coal stay underground in some of the more eco sensitive zones, including virgin forests. A recent decision to open up 40 more sites for mining have been uniformly condemned accordingly. Like large Hydro projects with their questionable delivery and performance record , our addiction to coal powered energy is not just hurting our present with the pollution and damage it causes, but also our future, by suffocating the growth of renewable energy. In effect, this has become a political decision today, the worst way to delay any decision in a noisy democracy like India. A public sector firm, Coal India Limited, and its 285,000 employees account for over 80 percent of the mined coal in India, spread across multiple states. It might sound big, but today that number is no longer as important or large as say 20 years ago. The coal mining sector, according to TERI, accounts for less than 0.7 percent of the economy today. That makes a transition away from coal, in a period much shorter than the over 30 year period envisaged in plans currently, eminently possible with the right political will and negotiations. Challenge number two, which has taken many by surprise, has to be the sheer failure of electricity demand to keep up with capacity additions. The demand issue is not a new one, as through most of 2019, it was already sending warning signals. But the Covid 19 pandemic has simply taken it to a whole new level. Where 2019 demand numbers were being compared to the higher 2018 figures, 2020 demand numbers are not expected to match even these lower numbers now. In simple terms, chances are that demand will hit be subdued right till 2021, assuming that the recovery from the pandemic picks up pace. In fact, a recent report from TERI posits that demand could be hit by 7 -17 percent till 2025, due to the Covid impact, which is still being measured. This, when power demand was projected to triple by 2040, on 2015 numbers. That is a huge blow to renewable energy plans. Not only has this demand slowdown/contraction already put pressure on discoms to curtail renewable purchases, it has absolutely frozen progress on signing of PPA’s/PSA’s for fresh projects that have been tendered out in 2020. This will lead to a chain of delays, that can potentially impact capacity creation right upto 2022 and beyond now. As mentioned at the start here, almost 8 GW of renewable energy projects are stuck at the LOA stage, with no PPA signed between SECI/NTPC with relevant discoms to move ahead to stage two. The demand issue is an even bigger problem to solve, thanks to the huge idle capacity of thermal plants that already exists, like a ticking time bomb for the banks that have lent money to them. Consider this. Of 33 stressed ‘assets’ or projects that have been taken up for some sort of resolution, worth 40 GW of capacity, 14 were actually ‘resolved ‘ in the past 12 months. But now, even these 14 projects with a size of 16,500 MW are struggling to meet debt servicing obligations due to inadequate cash generation, caused by both low offtake, and delayed discom payments. Reviving this massive basket of projects, with a sunk investment of over 200,000 crores potentially, is already leading to demands for extending PPA benefits beyond the original period, or retaining high tariffs, or finally, allowing them to sell merchant power at the energy exchanges in the country. Except for the last, each of the options is an indirect blow to renewable energy providers seeking to get a share of the stagnating demand pie. The saving grace is that despite all these challenges, demand , as expected is the easiest of the challenges to manage, thanks to the sheer size and options India has. So there is work that has already been done, besides what can be done to revive demand. What is done is that in the last three years, almost 26 million Indian households have been connected to the electricity grid for the first time, thanks to the Saubhagya initiative launched by the government of India in October 2017. This cohort of new users, along with rising incomes of the rest of the consuming class, can push up power demand by a clear 5 percent, as they acquire more household appliances. Add the push for 24X7 power to all, and you have the base for a steady driver of electricity demand growth. The second big move that needs to be done is electrifying the transportation sector. While many policy announcements have been made, actual movement on the ground has been slow going. But the picture here is promising, as it does look like the process here is on an irreversible path. From the many metro systems across the country, to the pledge of the railways to go all electric by 2025 or earlier, to the revised EV policies in key consuming states like Delhi, momentum is truly building up. As this electrification spreads to bus transport and personal transportation like two wheelers and four wheelers, the benefits will be enormous for demand as well as renewable energy. A strong backer for this is Union Minister Nitin Gadkari, who holds the road transport portfolio, among others. With a strong reputation for execution of large projects, Gadkari is a major votary for electrifying the transportation sector, to take care of surplus power production.

Nitin Gadkari. Solve The Demand problem By Finding Consumers in Transportation

The final big move would be the green energy corridors, envisaged as grids dedicated for agricultural use, powered exclusively by renewable energy. Till a year back, July 2019 to be exact, Power Minister R.K. Singh, while replying to a question in parliament, had stated that India has added 10261 MW of renewable energy capacity

to the Green Energy Corridor. According to the numbers provided, Madhya Pradesh has seen the maximum growth in renewable energy capacity with nearly 4593 MW of new renewable energy capacity added to the ISTS under the project. The second best in the list is Karnataka with 1532 MW of renewable capacity and Rajasthan in third with 1100 MW renewable capacity added. The logic here, that in states that subsidise power for agriculture, the investment into renewable energy and transmission infrastructure for the green energy corridors, will easily pay for itself in 5-7 years, depending on the extent of subsidies saved once the corridors are functional. The ambitions PMKUSUM scheme for solar water pumps ( Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan) is another initiative that can power this . Launched initially to support solar water pumps in off grid areas the PMKUSUM scheme has been expanded to target solar water pumps for 3.5 million farmers now, with the opportunity to supply excess power to the grid and earn too. IF executed well, this could be a huge driver of demand for power as well as solar at that. Finally, though it is not spoken about as much, but remains an issue that is hurting all of us, is the sheer apathy of a large part of India’s political class to the environment. Or a greener future. In state after state, especially the leading industrialised states where action is most urgent, the political class borders between apathetic to resistant to any major change . It is this love for the status quo that has become the biggest challenge for further inroads by renewable energy. Can you recall any election being fought on a green issue? Yes, elections have been fought on say, the compensation paid for displacement due to large dams, or rehabilitation from natural disasters of the kind whose frequency is increasing every year. But none of our political parties is ready to commit to sustainability the way we should by now. On the one hand, thermal power has created a web of incestuous links between the coal supply chain, plant owners, and calculation of fixed charges and cost plus margins, renewable energy, especially solar power has become a political minefield, seen as a pet project of the central government. Take just one example , the case of the 1320 MW power plant to be st up by Pench Thermal Energy , a subsidiary of Adani Power. It has signed a 25 year PPA with the MP Power Management Company Limited , for supply of 1230 MW of power. The agreement, the first thermal signing across India since the last such PPA in Kerela 5 years ago, was won with a reported bid price of Rs 4.79/unit (Rs 2.90/unit as fixed charge and Rs 1.89/unit variable charge), by Adani Power.

Madhya Pradesh has already tied up about 21,000 MW through long-term PPAs even as its peak demand in 2019-20 was 14,886 MW. It is no coincidence that states which have signed up for contracted capacities in excess of actual demand have got some of the most stressed discoms too. Maharashtra and Tamil Nadu are two prime examples, with both signing contracted capacities that are over 40 percent over their peak demand. At a time when even round the clock energy from renewable energy projects is available at under Rs 4, which will typically take far less than the 54 months the thermal plant will take to set up , these decisions are inexplicable. Worse, chances are, by 2025, thanks to lower storage costs the renewable costs will be even lower, while the thermal costs have no such future. Political apathy has led to a steady build up of issues related to land acquisition for renewable energy projects. As of now, over 1.5 GW of projects have been cancelled by developers claiming issues related to land allotment, among other things. Close to 11 GW of wind energy projects face a similar predicament.

Not Ambitious Enough

Source: CEA Report

The challenges we have outlined here might seem daunting, as they truly are, but the best ray of hope comes from the market. If allowed to function in a truly free market for energy, chances are, India too will move like the rest of the world towards renewable energy. We have just heard news of solar auctions in Portugal where developers have bid under Rupee one per unit for grid tied solar contracts, thanks to cleverly designed contracts. Or how coal has fallen from grace in the world’s largest energy market till recently, the US. No one predicted it, least of all the IEA, (International Energy Agency) whose 2006 prediction had expected coal consumption in the US to be 1267 million tonnes in 2030, and 1150 million tonnes in 2015. Well, consumption in 2020 is projected to be UNDER 400 million tonnes now, at 395 million tonnes. All driven by lower renewable prices, a conscious political move to discourage coal power, and consumer driven pressure to clean up. As it turns out, coal production peaked way back in 2007, at 1023.3 million tonnes. It’s time for India to aim for peak coal by 2025, and then, thanks to lower energy storage costs, higher efficiency and a further drop in renewable costs, a much faster transition to an energy mix that is truly renewables driven.

-Saur News Bureau

NTPC Seeks EPC Firms for 1070 MW Solar Projects in Rajasthan

NTPC Ltd has issued a tender, inviting bids from eligible firms for taking up the Engineering, Procurement and Construction (EPC) work along with land for the development of up to 1070 MW of solar PV power projects in Rajasthan. The scope of work for the selected bidders will include the design, engineering, manufacturing, supply, packing and forwarding, transportation, unloading, storage, installation and commissioning of grid-connected solar PV projects located anywhere in Rajasthan on a turnkey basis. The scope of work for the solar plant up to the interconnecting substation will include the complete transfer of ownership/ lease of encumbrance free land in favour of NTPC. The developers will also be required to provide comprehensive operation & maintenance of the complete solar PV plant including switchyard and power evacuation system till STU substation along with consumables and spare parts for a period of three years from the date of successful completion of a trial run. The individual projects awarded under the tender will be of a minimum of 50 MW or higher capacity in multiples on 10 MW. The last date for bid submission is September 17, 2020, and the techno-commercial bids will be opened on the same date. The date and time of opening of the price bids and the start of the reverse

auction will be intimated separately by NTPC to the technically cleared bidders. A pre-bid meeting has been scheduled for September 3, 2020, to address the concerns raised by the prospective bidders. The bid security amount to be submitted by the successful bidders will vary on the project size ranging from Rs 2 crore to Rs 50 crore.

SECI Awards Only 970 MW of 2 GW Wind Tender, Vena and JSW Winners

The Solar Energy Corporation of India (SECI) recently concluded the auction for its 2 GW ISTS-connected wind projects tender. The nodal agency has awarded only 970 MW capacity to the two successful bidders in Vena Energy (L1) and JSW Energy (L2). The tender (Tranche-IX) for the selection of the wind power developers was issued by SECI in March, with bid submission deadlines and document submissions ending on July 28, 2020. Vena Energy, which recently won 100 MW capacity as the lowest (L1) bidder in the Gujarat Urja Vikas Nigam Limited’s (GUVNL’s) solar auction for its 700 MW solar tender, also won this tender after submitting the L1 bid of Rs 2.99 per unit. The firm was awarded 160 MW wind projects capacity in the auction. Making its entry into the wind energy sector, JSW Energy – the wholly-owned subsidiary of Sajjan Jindal led JSW Group – submitted the L2 bid of Rs 3.00 per unit and bagged a massive 810 MW project capacity in the auction. Besides the two winners, only one other bid was submitted for the tender, by Inox Wind. Wind tenders have been heavily undersubscribed in the last 18 months in India. This could be attributed to problems in securing good sites with attractive wind resources and adequate access to transmission networks. Key states like Tamil Nadu have virtually declared a halt on fresh capacity, while issues with land allotment in Gujarat have been well documented .

The winners will now set up the projects anywhere in India on a “Build Own Operate” basis. SECI has been designated as Trader for purchase and sale of wind power from the projects and will enter into Power Purchase Agreements (PPA) with the two winners for a period of 25 years and Power Sale Agreements with the interested Buying Entities.

PM Modi Brings Massive 7.5 GW Ladakh Solar Project Back In Focus

Prime Minister Narendra Modi during his Independence Day speech reinstated the Centre’s aim to establish a 7.5 GW solar power park in Ladakh to set the union territory on course to becoming carbon neutral. In his speech, Modi said that “Ladakh has several specialties. Not only do we have to preserve them, we have to nurture them as well. As Sikkim has made its mark as an organic state in the northeast, Ladakh — Leh and Kargil — can also create their own niche as carbon-neutral regions,” as he mentioned about the proposed solar park project. The Ministry of New and Renewable Energy (MNRE) is moving to partly fund the linked transmission line, the cost of which was making power unaffordable. “The transmission project is being included in the Centre’s Green Energy Corridor Phase-II for viability gap funding (VGF),” as per Power Minister RK Singh. Which will make the transmission project eligible for up to 40 percent Viability Gap Funding (VGF) from the Centre. The project has an estimated outlay of Rs 45,000 crores with a target commissioning date in 2023, saving 12,750 tonnes of carbon emissions in every year of operation. Of the 7.5 GW capacity, a 5000MW unit is being planned at the Morey plains, some 215 km east of Leh. And a 2,500-MW unit is to be built at Suru in Zanskar, 245 km east of Kargil.

Some 25,000 acres in Leh and 12,500 acres in Zanskar has been earmarked for the project. The Leh and Kargil hill councils will earn Rs 1,200 per hectare, with a 3 percent annual escalation. At this stage, while it is certain that the project will showcase some innovations in every sphere from financing to technology used due to its high CUF requirement of 30 percent, the 2023 date might be too stiff a target.

5 Winners in GUVNL’s 700 MW Solar Tender, Vena & Tata L1 Bidders

The recently concluded auctions for the Gujarat Urja Vikas Nigam Limited’s (GUVNL’s) 700 MW solar tender saw the entire capacity awarded to five bidders. With Tata Power and Vena Energy submitting the winning bids (Lowest Bids – L1) of Rs 2.78/ kWh. As per industry reports, both the L1 bidders secured capacities of 100 MW each under the tender. Followed by ReNew Power which secured 200 MW project capacity with its bid of Rs 2.79/kWh. SJVN Limited came in with the L3 bid of Rs 2.80/kWh and secured 100 MW capacity while TEQ Power secured the remaining 200 MW capacity with its bid of Rs 2.81/kWh. The ceiling tariff for the tender was set at Rs 2.92/kWh. In March, GUVNL had floated its tender for the selection of solar power developers for setting up 700 MW solar projects at the Dholera Solar Park. As per the RfS, GUVNL had re-tendered the 700 MW capacity which remained unallocated in solar tenders invited by the agency on January 16, 2019, (Phase V) and June 24, 2019 (Phase VII). As per GUVNL, the tender had been issued in order to fulfill the renewable power purchase obligation (RPO) and to meet the future requirements of Discoms. The five winners will now set up the projects in the Dholera Solar Park on a Build Own

and Operate basis in accordance with the provisions of this RfS document and standard Power Purchase Agreement (PPA). GUVNL shall enter into PPA with successful bidders for a period of 25 years from the scheduled commercial operation date of the project.

4 Winners in NTPC’s 1.2 GW Solar Tender, Winning Bid at Rs 2.43/kWh

NTPC Ltd has concluded the e-reverse auction for its tender for the selection of solar power developers for setting up 1.2 GW ISTS-Connected solar PV power projects anywhere in India. Four winners in O2 Power, Tata Power, Azure Power, and AMP Energy emerged as winners in the tender, with a total of 1170 MW capacity awarded. O2 Power, Azure Power and Tata Power emerged as the winning bidders after all three matched the winning bid of Rs 2.43/ kWh. O2 Power secured 400 MW capacity, Tata Power bagged 370 MW capacity and Azure secured 300 MW capacity at the winning tariff. Whereas, AMP Energy has secured 100 MW capacity at a tariff of Rs 2.44 per kWh. “O2 Power, which is a new entrant in the market will now have a pipeline of 780 MW of solar projects. AMP Energy is also now aggressive in the recent tenders and is looking to build its portfolio and with this 100 MW win, it will now have a portfolio of 300 MW of solar projects in the pipeline,” stated research consultancy JMK Research. The low tariffs seen in the last two tenders, namely, the SECI 2 GW with the record low Rs 2.36/ kWh tariff and this one are a throwback to the record lows seen in 2017. The low tariff trends can be an opportunistic play by developers looking to take advantage of the current situation wherein only safeguard duty of 14.9 percent is applicable. Though there is a high probability of double duties in the form of safeguard duty as well as Basic Custom Duty (BCD) of 20-25 percent due to ongoing China border issues. So far, the government has held back on the BCD announcement, perhaps due to the competing claims of high duty demands from manufacturers versus developers warning of higher end prices.

EESL Tenders for 279 MW of Solar Power Systems in Maharashtra

The Energy Efficiency Services Limited (EESL), a joint venture of PSUs under the Ministry of Power, has issued a tender for the commissioning of 279 MW (cumulative) solar power generating systems (SPGS) of capacities ranging between 2 MW and 10 MW at various locations across Maharashtra. India has received financing from the German state-owned development bank KfW towards the cost for scaling up demand-side energy efficiency (sector) project, and a part of this financing will be applied to eligible payments under the contract for this invitation for bids has been issued. The scope of work for the selected bidders will include the design, engineering, supply, construction, erection, testing, commissioning of the solar power generating systems. The developers will also be required to provide comprehensive

Masdar, EDF to Partner on 8 US Renewable Energy Projects Worth 1.6 GW

EDF Renewables North America and Masdar, a subsidiary of UAE based Mubadala Investment Company, have announced Masdar’s second strategic investment in the United States (US) in a deal with EDF Renewables North America that will see it acquire a 50 percent stake in a 1.6-gigawatt (GW) renewable energy portfolio. Under the terms of the agreement, Masdar has acquired a 50 percent interest in three utility-scale wind farms in Nebraska and Texas totalling 815 megawatts (MW), and five photovoltaic (PV) solar projects in California – two of which include battery energy storage systems – totalling 689 MW of solar and 75 MW of lithium-ion battery energy storage. Tristan Grimbert, President and CEO, EDF Renewables North America, said, “EDF’s collaboration with Masdar runs deep in the Middle East and North Africa already. This deal writes a new chapter of cooperation operation and maintenance services for the solar plants upon successful commissioning. The last date for submission of bids is September 25, 2020, and a pre-bid meeting has been scheduled for September 11, 2020, to address the concerns raised by prospective bidders. The bidders should have successfully or substantially completed within the last seven years ‘similar work’ to the proposed contract, where the cumulative capacity of the bidders’ participation shall exceed: For Lot 1 and Lot 3 – 15.6 MW For Lot 2 and Lot 4 – 17.7 MW For Lot 5 – 17.1 MW Out of which at least one grid-tied groundmounted solar project should have been of capacity 5 MW or above OR two projects of capacity 4 MW or above OR three projects of

capacity 3 MW of above. between our two companies focused on the North American market. I would like to highlight the exceptional quality of work for both the Masdar and EDF Renewables North America teams over the last year to execute this transaction in particularly troubled times.” Power from the diversified portfolio projects will be sold under long-term contracts to a variety of offtakers, including utilities, hedge providers and community choice aggregators (CCAs). And will displace more than 3 million metric tons of carbon dioxide annually. “As the second largest renewable energy producer in the world in terms of installed power capacity, the US offers considerable scope for further growth and diversification of our renewable energy portfolio,” said Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar. “We are delighted to expand our presence there through this landmark deal to invest in eight clean energy assets in California, Nebraska and Texas, and to further strengthen our global partnership with EDF Renewables.” The deal is well timed, coming in the same week as UAE apparently deciding to normalize relations with Israel, a move that will place it firmly in the US camp as a friendly Arab country.

Siemens Gamesa Selected for Adani’s 473 MW Wind Project in Rajasthan

The German-Spanish Manufacturer, Siemens Gamesa Renewable Energy, continues its resurgence in India. The firm, one of the world’s leading wind turbine manufacturers and solutions provider, has announced that it has received a firm order from Adani Green Energy for one of the largest wind power projects in India. The company will deliver 215 SG 2.2-122 wind turbines, totalling 473 MW, in what is one of the largest orders it has secured in the subcontinent to be developed in Rajasthan. The agreement with Adani will see Siemens Gamesa deliver on its core strengths covering manufacturing, supply, installation, and pre-commissioning of the wind turbines for the project in Fatehgarh, Rajasthan, India. Siemens Gamesa had earlier signed several projects with Adani totalling 391.2 MW, in which 87.6 MW has already been commissioned with the remaining MWs under construction. Adding this new order to the existing contracted capacity the Siemens Gamesa – Adani partnership surpasses 860 MW, underscoring SGRE’s position as one of the most trusted renewable energy partners in India. “We are happy to announce this new deal with Adani Green Energy and we thank them for placing their confidence in our capabilities. Growing partnerships

with leading IPPs like Adani encourage us to enhance our efforts in developing innovative technologies to deliver more value for our customers,” said Navin Dewaji, India CEO of Siemens Gamesa. Siemens Gamesa has operated in India since 2009, and the base installed by the company recently surpassed the 6.9 GW mark, making India one of the firm’s biggest onshore wind markets worldwide.

NHDC Tenders for 25 MW Floating Solar Park in Madhya Pradesh

NHDC Limited, a JV company of NHPC Ltd and the Government of Madhya Pradesh, has issued a tender, inviting bids from eligible firms for taking up the Engineering, Procurement & Construction (EPC) work for 25 MW floating solar power park at the Omkareshwar reservoir in the Khandwa district of MP. The park will consist of two floating solar power projects of 13 MW and 12 MW capacity. The scope of work for the selected bidders will include the design, EPC, and other related work for the commissioning of the project. The developers will also be required to provide comprehensive operation and maintenance services for the plants and the associated 33KV transmission line and switchyard at Sanavad for a period of five years from the date of successful commissioning. The developers will have a period of 12 months to complete the work on the successful commissioning of the project after which the 5 year O&M period will begin. The last date for bid submission is August 25, 2020, and the techno-commercial bids will be opened on the next date i.e. August 26, 2020. To be eligible, the bidder should have

experience of having successfully completed a solar power project during the last seven years on EPC basis having capacities as below, as on the last date of the month prior to the bid submission date: A Solar Power Project of at least 20 MW Capacity or Two Solar Power projects of at least 12.5 MW Capacity each or Three Solar Power projects of at least 10 MW Capacity each. Furthermore, the bidder should have successful experience of Operation & Maintenance for a minimum of 10 MW solar power projects for at least one year during the preceding seven years.

Rs 1.8 Tn Investment in Transmission Segment in India by 2025: ICRA

Credit rating agency ICRA has revealed in a new analysis that it expects an investment of Rs 1.8 trillion over the fiveyear period from FY2021 to FY2025 in the power transmission segment at all India level, driven by evacuation infrastructure for renewable energy (RE) projects. In line with the shift in policy focus from conventional sources (coal and gas) to renewable power sources (wind and solar), the focus of the transmission segment according to the report is towards augmenting the transmission infrastructure for evacuation of power generated by renewable energy projects. Sabyasachi Majumdar, Group Head & Senior Vice President- Corporate ratings, ICRA, said “the Government of India has lined up 14 transmission projects under the tariff-based competitive bidding (TBCB) route for developing transmission infrastructure for evacuating power from 25 GW renewable power projects and another six projects in the intra-state segment, providing a healthy pipeline for private sector players. While there is likely to be a slowdown in electricity demand and investments in the sector in FY2021 amid the COVID-19 induced disruption, the same are likely to recover from FY2022 onwards.” In the past five-year period, the power transmission segment of the Indian power sector has witnessed healthy growth with an average annual capex of ~Rs 500 billion, in line with the significant growth seen in the installed power generation capacity. The investments in the power transmission segment have been led by the Power Grid Corporation of India Limited (PGCIL) and by the state transmission utilities, followed by the private sector. The analysis goes on to add that while the National Tariff Policy mandates that transmission projects must be awarded through the competitive bidding route, many projects continue to be awarded to PGCIL and the state transmission utilities under the regulated tariff mechanism citing certain exceptions.

Rate of Decline In Power Generation Slows, Seen as a Sign of Recovery

According to data made available by government resources, the rate of decline in power generation in the past few months has slowed down in July. This slowdown is being seen as a sign of recovery, that the economy is (perhaps) gradually returning back to normalcy after getting severely hit by the pandemic and the subsequent lockdown measures to contain its spread. As per data available with grid operator POSOCO, electricity generation fell by 1.8 percent in July as compared to the much sharper fall of 9.9 percent in the previous month of June. The generation had also fallen sharply in April when most parts of the country were under full lockdown due to the COVID-19 outbreak. However, it is also interesting to note that while there has been an overall increase in power generation and consumption, the trajectory of the consumption and generation has been negative as the month

‘Surge ‘in Residential Rooftop Solar in NCR: The Alternative Reality Of Delhi Discoms

Irony just found a new supporter. The Delhi discoms. According to them, barely 1900 solar rooftop connections in the past three years count as a ‘surge’ in solar rooftop adoption. Of course, this makes sense if you consider the low base of solar rooftop in NCR region. But beyond that, the reality could not be further from the truth. The BSES Discoms have claimed that they have so far energised over 2,700 solar net metering connections in the city, with the highest number of rooftop solar connections in the residential segment (1,526) followed by educational (581) and commercial (473) segments, an official spokesperson said. Media reports quoted the said officials claiming that “An analysis of the data of July progressed. The decline continued at much faster pace in the latter part of the month, than it did in the first half. In the first half, the decline in generation was just about 0.6 percent, but it rapidly increased to 3.1 percent after July 15. The slowdown in generation decline has come at the behest of a pick up in power consumption in large populous states such as Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan, and Jharkhand. However, the power consumption continued to remain slow in the industrial states of Delhi, Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh, and Karnataka, indicating that things are still far from normal and both economic growth and a pick up in power consumption will take more time to materialise. The real power consumption story, and state of recovery, is likely to become clear only from October, as July-August-Sept usually see a drop in

demand due to the monsoons too. shows that the highest number of rooftop solar net metering connections is in the domestic segment. In fact, the rooftop solar connection is a big hit among the central government housing society (CGHS) segment wherein around 90 societies and apartment complexes have opted for it with a sanctioned load of over 5 MWp,” he added. 5 MWp. Let that number sink in, especially when compared with Delhi’s declared target for 2019; The Delhi Solar Energy Policy (2016) says: “Delhi established solar generation targets of 1 GW (1000 MW) by 2020 (4.2% of energy consumed) and 2 GW (2000 MW) by 2025 (6.6% of energy consumed).” With the largest chunk of solar rooftops accounted by government buildings and institutions, including the state government’s own push to have it on government schools, the road ahead for solar rooftop needs far more than a surge as described by the discoms. It needs clear rules, an approval timeline process that needs to be halved or more from the current 2 months plus with no certain outcome, and a real will among the discoms, enforced with penalties that make a difference.

PXIL Highlights Power Market Regulatory Reforms and Insights

Ahead of the public hearing of the Central Electricity Regulatory Commission (Power Market) Regulations 2020, the Power Exchange India Limited (PXIL), conducted its 2nd Market Advisory Committee and Stakeholder consultation meeting to discuss key market regulatory reforms concerning the power industry. The event, which was attended by more than 80 participants from Distribution Companies (Discoms), IPPS, SLDCs, Captive generators and other stakeholders from the market, threw light on crucial topics – Key aspects of Draft Power Market Regulations 2020, Decision support tools for Real-Time Market (RTM), Significance of market coupling and dual price discovery, Efficiency and convergence of prices. Dr. Kirit S. Parikh, Chairman, MAC & Independent Director, PXIL, in his opening remarks emphasised on the need of converging prices in the collective segment, congratulated the market participants for having demonstrated the need to have competition between exchanges, and, finally, on the benefits, the proposed market coupling is likely to bring to the market and market participants. He further added that the Government has been promoting competition in the procurement of various services. The electricity sector, in general, and electricity procurement, in particular, falls under the guiding principles to foster competition and transparency. In the opening remarks, while talking about market coupling, pricing and need for market participation, Prabhajit Kumar Sarkar, MD & CEO, PXIL said that the rapidly changing framework of the entire power sector demonstrates the key role that power markets have to play. The underlying need for competition in the power markets is, therefore, gaining acute significance in the industry. “A competitive marketplace can thrive on a strong foundation of an enabling market structure like market coupling, fair rules that allow competition to thrive and ensuring ease of participation on various marketplaces.”

CERC Grants Approval for Third Power Exchange in India

The Central Electricity Regulatory Commission (CERC) has approved the petition filed by Pranurja Solutions Ltd, a company promoted by BSE, PTC Ltd and ICICI Bank, to establish what will become the third power exchange in India after Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). Power exchange facilitates over-the-counter sale and purchase of power via different types of contracts — day-ahead, termahead, renewable energy certificates, and recently introduced real-time electricity market. At present, PTC holds a 49 percent stake in Pranurja Solutions, a major niggle with the existing two exchanges, as PTC is itself a major trader in the power market. A trader owning nearly a big chunk of the exchange would be a major conflict of interest because it could trade only on the exchange it owns. BSE also owns a massive 41 percent stake in the firm, while ICICI Bank holds 9.9 percent, respectively. In line with this, the CERC has put a condition on the license for setting up of the power exchange. The shareholders will have to dilute their stakes to own not more than 25 percent each, within eight weeks of the order issuance (which was July 31, 2020). Pursuant to which, the promoters have already initiated the process to reduce their stake in the exchange to meet the criteria of 25 percent or less, which is in accordance with Regulation 19 of the Power Market Regulations, 2010.

Electric Bus Garage in London to Feed the Grid in Largest Ever Trial

A bus garage in London housing 28 fully electric buses is set to become a virtual power station in the what will be the world’s largest trial to see if the stationary electric buses can feed power into the grid from their pooled batteries during periods of high demand, and in turn, help Britain meet its 2050 net-zero climate change target. From November this year, the trail of the government-funded Bus2Grid project will take energy from the 28 parked zeroemission electric buses and feed it into the grid during times of high energy demand for a period of three years, in an attempt to make the electricity network more efficient. London has one of Europe’s largest electric bus fleets with more than 200 vehicles, and drawing from the proposed success of the trial run, if the government-funded project is rolled out across London it could power an estimated 150,000 homes. Energy firm SSE Enterprise will lead the project, backed by Bus2Grid project in a partnership including the mayor of London, Transport for London, bus operator Go-Ahead London and the University of Leeds. The Bus2Grid project claims the Northumberland Park garage will be the

“world’s largest” vehicle-to-grid site. Niall Riddell, smart systems innovation sector director for SSE Enterprise, told British media that “Central to the challenge of decarbonising our transport and achieving climate change targets is how we can optimise the existing flexibility within the energy system. Developing a charging infrastructure that operates in two directions so that batteries can give back as well as take from the grid is an important part of this.”